What are halal ways to increase my credit score?

Islamic Finance & Shariah
21

Do these companies accept lower credit scores or is it through a guarantor you’d get it?

22

@Nishat i believe there’s a difference of opinion on whether credit cards are permissible.

One view is that it’s not permissible to have a credit card.

The other view is that it is permissible so long as you always pay it off before interest applies

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23

Ok :ok_hand: so using a credit card to boost your score could be halal. Tbh, I still felt guilty because I’m still funding an interest based system. When I saw this post I was hoping to find out some other ways. I know about voting, loqbox (if that’s even allowed) and paying bills on time. But was hoping to find out so other tips.

24

@Khalil do you have any particular scholars/institutes who hold these opinions- would be interesting look into these.

25

@HassanTariq here’s a few resources on the discussion:

Sheikh Yasir Qadhi:

1 Like
26

Coming back to the original question: If we take the opinion that using a credit is halal in the first place, a halal way to improve credit score would be to borrow a sustained amount every so often (much below what you require for monthly payments). Then ensure that a set amount (well above the required amount) is transferred to the credit card (I.r. From a debit card). That way one is building a credit score and never has to pay interest.

27

I think these companies generally decline you with low credit scores, unfortunately. They would rather have a client with a sufficient amount of money or money coming in on a regular basis or else they’d lose business. Which makes sense!

28

One way to increase your credit score which you’ll have to research its halalness is through Experian, they have really good tips that they send every week on how to increase it. You also have the opportunity to check your credit score as well, simply subscribe to it and check your credit score and you will be able to check. There are other platforms as well and Experian has more features to check your credit score and in more detail but that is paid, but worth the investment! you have a free trial for a month, so definitely check it out! it is the UK’s most trusted credit score checker